Top Firm Announces Strategic 'Overhaul'

The Financial Times reports that Deutsche Bank CEO Josef Ackermann has written to senior staff advising them that he is conducting a strategic review of the bank's operations in a bid to boost profits and Deutsche's falling stock price.

Ackermann is said to be alarmed at the bank's depressed stock price, which has fallen around 80% over the last year. He wrote in his recent letter that 'nothing, either in respect of future losses or capital requirements, justifies the currently heavily discounted price level of our stock'.

According to the newspaper, Ackermann is looking to expand Deutsche's transaction banking unit by acquisition, and is looking to generate additional profits from its private clients business. He said that he will scale back unprofitable business units, increase the bank's capital ratio and reduce leverage.

Bloomberg reports that UBS is said to have fired an executive in the US in August for allegedly charging inflated fees at an $11.7bn US real-estate fund. The executive, Richard Trusz, denies the accusations and has filed a wrongful-termination lawsuit. UBS says that it stands by its view on the matter. And The Wall Street Journal reports that UBS clients are coming forward to seek an amnesty from the US government, which is in the midst of a probe into allegations that the Swiss bank assisted wealthy clients avoid the payment of up to $20bn in taxes.

Finally, Reuters reports that Standard Chartered is to raise $2.7bn by way of a rights issue in order to beef up its balance sheet. Singapore's state-owned investment company and the bank's biggest shareholder, Temasek, is to take up the offer.

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